CHAP 21

Q1:

At the beginning of the period, the Packing Department budgeted direct labor of $22,000 and property tax of $50,000 for 2,200 hours of production. The department actually completed 2,900 hours of production.

Determine the budget for the department, assuming that it uses flexible budgeting. $

Q2:

Curley Publishers Inc. projected sales of 42,000 diaries for 2016. The estimated January 1, 2016, inventory is 2,100 units, and the desired December 31, 2016, inventory is 4,000 units.

What is the budgeted production (in units) for 2016? units

Q3:

Kidman Publishers Inc. budgeted production of 26,000 diaries in 2016. Paper is required to produce a diary. Assume 72 square yards of paper are required for each diary. The estimated January 1, 2016, paper inventory is 131,000 square yards. The desired December 31, 2016, paper inventory is 66,000 square yards.

If paper costs $0.12 per square yard, determine the direct materials purchases budget for 2016. If required, round your final answer to the nearest dollar. $

Q4:

Grewett Publishers Inc. budgeted production of 66,000 diaries in 2016. Each diary requires assembly. Assume that 10 minutes are required to assemble each diary.

If assembly labor costs $12 per hour, determine the direct labor cost budget for 2016. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar. $

Q5:

Kerrie Publishers Inc. collects 45% of its sales on account in the month of the sale and 55% in the month following the sale.

If sales on account are budgeted to be $94,000 for April and $76,000 for May, what are the budgeted cash receipts from sales on account for May? $